The shares of Flowserve Corporation (NYSE:FLS) and Gardner Denver Holdings, Inc. (NYSE:GDI) were among the active stocks of the last trading sessions. Flowserve Corporation (NYSE:FLS) soared to 7.83% closing at the price of $53 whereas the shares of Gardner Denver Holdings, Inc. (NYSE:GDI) declined -2.97% with the decrease of -0.83 points closing at the price of $27.11. Flowserve Corporation has currently increase 21.76% in its stock over the period of 6-months while its rival Gardner Denver Holdings, Inc. subtracted -18.93% in the previous 6-months.

Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.

Returns and Profitability

Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.

The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Flowserve Corporation (NYSE:FLS) is 5.9% while the ROI of Gardner Denver Holdings, Inc. (NYSE:GDI) is 4.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, FLS’s EBITDA Margin is 17.16 whereas GDI’s is 12.02.

Both the profitability ratios suggest that Flowserve Corporation (NYSE:FLS) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Flowserve Corporation (NYSE:FLS) reported $0.49/share EPS for the previous quarter where analysts were predicting an EPS to be $0.43/share Thus beating the analyst Estimates with a Surprise Factor of 14 Percent. While, Gardner Denver Holdings, Inc. (NYSE:GDI) reported EPS of $0.49/share in the last quarter. The analysts projected EPS of $0.48/share depicting a Surprise of 2.1 Percent.

Taking a look at Earnings per Share, Flowserve Corporation tends to be beating the analyst estimates more than Gardner Denver Holdings, Inc.. so FLS is more profitable than GDI.

Moving average convergence divergence (MACD) shows that Flowserve Corporation (NYSE:FLS) is on a PRICE RELATIVITY trend While Gardner Denver Holdings, Inc. (NYSE:GDI) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Flowserve Corporation was in BULLISH territory and Gardner Denver Holdings, Inc. was in BULLISH territory.

FLS’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While GDI’s candle is BEARISH with HIGH.

EPS Growth Rate: FLS’s 26.79% versus GDI’s 18.18%

Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Flowserve Corporation (NYSE:FLS) is predicted at 26.79% while Gardner Denver Holdings, Inc. (NYSE:GDI) stands at 18.18%. These numbers suggest that FLS is more suitable investment in terms of EPS growth rate.

Financial Risk and Liquidity Concerns

The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of FLS stands at 2.3 while GDI is at 2.4 whereas the debt ratio of the prior is 0.94 while the debt ratio of the later is 1.08.

The values of the both ratios suggest that GDI is more suitable investment when the liquidity and risk is the main concern.

Analyst Recommendations

While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.8 for FLS and 1.9 for GDI which means FLS has Hold rating whereas GDI has Buy rating.

Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for FLS is $50.73 which is -4.47% of its current price while GDI has price target of 33 which is 17.85% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

FLS currently has price to earning P/E ratio of 81.41 whereas GDI has 18.17 while the forward P/E ratio for the prior stands at 25.11 and for the later it depicts the value of 13.83.

The price to Book P/B for FLS is 4.28, Price to Sale is at 1.82 and for GDI these ratios stand at 3.37 and 2.04.